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Dáil Éireann díospóireacht -
Wednesday, 6 Mar 1968

Vol. 233 No. 2

Committee on Finance. - Vote 37—Agriculture (Resumed).

Debate resumed on the following motion:
That the Vote be reduced by £2,600 in respect of subhead K.K.6 —National Agricultural Council.
—(Deputy Clinton).

When replying on the previous occasion, I had dealt with most of the questions raised by Deputies and it would not be in order, I think, to deal with general matters of agricultural policy. However, there are a few points I may have missed which I shall deal with now.

Deputy Clinton raised the matter of a lactose factory and the use of whey for pig feed. I should like to say at this stage that I am as anxious as any other interest to have the clearest possible indication whether in fact a lactose factory is in the best interests of our dairy industry, or whether, indeed, the whey which would be directed to such a factory would be more profitably used in the production of pigs. If there were a possibility that whey could be so absorbed fully and profitably in the production of pigs, I personally would feel very much attracted to that method of its disposal, rather than to the lactose factory project. The fact is that during recent years the demand for this sort of factory has been growing because of the fact that whey in quite substantial quantities, we understand, has been found incapable of being directed towards any useful purpose such as the feeding of pigs. Even its disposal has created a problem. If it is not possible, the sooner we get to know that is the case the better, because we have a projected factory for the manufacture of lactose from this whey and we could get along with it pretty quickly at this stage. If anyone has any information that would confirm whether we should or should not, the sooner we get it the better I should like it.

Deputy T. O'Donnell talked, among other things, about the Bord Bainne plan for securing new markets and the general future prospects of the dairying industry. So far as the dairying industry is concerned and its outturn in recent years, the producers in that industry have good reason to be pretty pleased with their future prospects. As everyone is aware, milk production has been setting new records almost year by year in recent years. On the other side, cattle prices at this particular point in time are giving every indication of being good in the immediate future. So, from the two sides of the interests of the dairy farmers, the outlook can be regarded as satisfactory.

The same Deputy mentioned his concern about foreign participation in the processing of milk. This is something we have come to live with in regard to many of our products, whether they derive from agriculture or from industry. The question here must always be whether participation means progress and the establishment of further processing, or whether the lack of participation would nullify any effort in any direction. If expansion is desirable and worthwhile for its own sake, I think we must live with this foreign participation. Indeed, we should welcome foreign participation when it is the only means whereby we can find additional outlets for processing. I can see reasons for this inhibition particularly when it comes to milk processing. It is very near home, as it were, then and many people begin to feel that contrary to what their local co-operative may have done in the past in the handling of milk, in buttermaking and so on, it would be out of their control. I understand that sort of inhibition, but what we should never forget in this type of industry or any other industry is that the people who come in here from outside are far more vulnerable than we ourselves are here at home. If they are prepared to come in here and give us of their knowledge, and know-how, and capital, and possibly existing markets as outlets for our products, we have nothing to fear in this regard and we should, as we do in most cases, welcome foreigners in here to help us to do the job better.

Deputy Clinton and Deputy Tully mentioned the Drink More Milk Campaign. The National Dairy Publicity Council which was set up in 1964 to promote an increase in the consumption of milk and dairy products have contributed to a reduction in the high cost of subsidisation by their activities, and have done a useful job. It may be that they will do an even greater job and play a greater role in future in pushing our own raw milk products, as it were, to a greater degree. I hope they will continue to work even more effectively in future.

Fears were expressed by more than one Deputy in regard to bovine tuberculosis and the fact that there has been some evidence of a breakdown in a few parts of the country. They really were querying whether we were worrying about it and what we were doing about these breakdowns. We must first of all get the record straight in this regard. We must not forget that nearly 99 per cent of our herds are completely free of all disease. Whether these fears about breakdowns are real or imaginary, we must recall that 99 per cent of our herds are completely free. In the Department we are following up any evidence of any breakdown and we will continue to do this until we are in a position to sit back and say we have safely got the whole situation completely under control.

You never will. No country is ever immune from a breakdown.

The fact that no other country has done something is no reason why this little country of ours should not at least attempt to do it. A figure of 99 per cent in a very short time—and the Deputy himself contributed——

I am on the Minister's side.

The fact that it has never been done anywhere else is no reason, in my estimation, why we should not aim at it, and take every possible step to try to ensure that we do it, even though no one ever succeeded in doing it before. The record of achievement during the years since the eradication programme began gives a fair indication that we could probably do even better than most other countries in this regard.

You will never get rid of it completely. You will do your best and we will help you.

Why not?

There is probably a person with TB in this Assembly at the moment. I hope it is not I.

That is the kind of stuff that leaves you over there.

It is obvious that out of 144 people there might be someone with TB. Let us hope there is not.

Or hydrophobia.

I hope whoever that is does not bite me.

Whoever that may or may not be, we have not got around to compulsory eradication in this House yet and we do not intend to. I do not think that comparison is well taken.

The sheep industry was mentioned here and was described by Deputy Clinton in reasonable terms as not being in a happy position generally. We must go by the common indicators. While admitting and agreeing it was a difficult year so far as wool prices and wool disposal were concerned—and indeed man-made fibres are making further inroads on the need for raw wool of the type we have here which does not augur too well for the future of the wool trade—nevertheless wool is only one part of the sheep and a relatively small part, financially speaking. The sheep trade as a whole has been and continues to be pretty sound. At times this year it was extremely good. The small contribution we made to the mountain sheepbreeder this year has been very much appreciated. The House will be aware that the lamb subsidy scheme this year which was directed towards Black-Face and Cheviot breeds has brought to mountain sheep-farmers about £176,000 in direct subsidy without any tags attached or sale conditions as applied in the previous scheme initiated the year before. I have met a number of these people and they are quite satisfied that, so far as we have gone with this scheme, it has worked out quite satisfactorily. I had no real complaints about its administration but I had much praise for its impact and the manner of administration this year. I feel it will have done a considerable amount for hill sheep-farmers who represent no small part of our sheep industry. Prices have been good and fairly steady and demand has been reasonably good, taking a good period back over the year, and present indications seem to be set fair for the coming year.

Deputy Clinton and Deputy Tully spoke of the beef export subsidy and a remark made by either or both of them at the time, of which I took a note, was to the effect that producers do not know enough about how to get paid the subsidy direct and have to wait an unduly long time for the subsidy payment. They went on to calculate how much this could mean and the impact on the farmers who had to wait a considerable time. While this might be true in the initial stages—the direct payment arrangement is only a short time in operation—and because of the upset caused by foot and mouth restrictions, a great deal of trading has not taken place in this way since then, but, suffice to say, the direct payment scheme is now operating through the dead meat factories and it means in essence that the price offered on any particular day for the animal as heretofore is now capable of being broken into two parts and that the farmer can get the price plus the subsidy as a separate payment, subject to bringing the animal to the factory and filling in a form so that we have a record afterwards.

As regards the passing of these claims, if there has been any undue delay—I do not anticipate there will be any in the future—we should realise that farmers are not accustomed nowadays, particularly with marts operating as they are throughout the country, to getting cash in hand as in the old days when we had fairs only in the different towns. Now, they rather get it a week or ten days later and this applies to any produce they sell through the marts. If they have to wait for part of their money which comes through the Department while the claim is being processed, I do not see that it should be any undue hardship and is less of a hardship, if anything, than is involved in selling an animal through the mart and getting a cheque a week or ten days later. We should be able to serve the farmers under this scheme in regard to these payments with about the same expedition as the marts. I do not think that this is something that should scare people off applying for the direct subsidy. I doubt if it has done so.

The direct subsidy to the farmers as we have brought it into being probably has not a great deal to commend it, other than that you can get the subsidy in a separate payment and know the subsidy content of the total price. I do not claim that it has any great advantages for the farmer but, candidly, after a great deal of examination of various suggestions I and my Department concluded that it was the only way in which the farmer could have the option of getting the subsidy direct rather than lumped in with the price, a procedure which led to some complaints, probably with justification in recent years. I am not claiming any great advantages for this system. It is something that was sought and is now being given in what we think is the best way and, as I said before, if anybody knows of a better way I should be only too glad to hear of it and put it into operation. Until we get a better one—I doubt if there is one—this system will operate and I hope the farmers for their own sake will avail of it at any rate occasionally just to keep the records straight and satisfy themselves what the subsidy content of the price is at any given time. It will probably give them the satisfaction of knowing that they are not being taken short by reason of the lumping of price and subsidy together.

Deputy Tully spoke about grants for milk-coolers and said that possibly one of the reasons why more people had not applied for them is that they may not have electricity on their farms. That is true for a small section of farmers but I do not think it would explain any short-fall in regard to applications for milk-coolers. Rather I would think the reason why we have not had so many applications in the past six or eight months was that at the time of the introduction of the milk-cooler subsidy the milk production season was then in full swing. We were right in the middle of it and it was unlikely at that stage that anybody who had not already arranged to procure a milk-cooler for that season would be encouraged to get one, even with the incentive of the grant. I should expect the demand to be correspondingly higher in the early part of this year when the general milk season is ahead of us. I hope this will be so and that as a result more farmers not yet earning the bonus for quality milk will qualify because this would help them to secure it.

As I said earlier, the overall percentage earning this bonus has gone up beyond our projections. We are very glad that it is higher than we expected but we believe the milk-cooler scheme can further add to this scheme to produce high quality milk. When we introduced the scheme, it was my hope that in a few years time we would not have two grades of milk being sent to the creameries but that it would be all quality milk.

It was mentioned here that the matter of the safeguards imposed by the British Minister of Agriculture, in regard to the import of meat from countries where foot and mouth disease is endemic, was one on which we should make every effort to make our voice heard. We have done this; we have missed no opportunity of having our say in this matter, which, however, is something that is finally determined by the British Minister and the British Government. While we have made our plea in this regard already, and will again at any time in the future when we feel it will be useful to say anything in this context, we must keep in mind that it is a matter that is not for us to decide. In the final analysis, it is the British Government who must make the final decision.

There is one other matter mentioned by Deputy Coughlan about bacon factories. He referred to the closing of bacon factories and attributed this to an inadequate supply of pigs. The number of factories at the moment is about the same as we have had, take or give one, for many years past. For 20 to 30 years there has not been much difference in the number of factories operating in the country. It is also true to say that the number of pigs going into the factories even last year was higher than the number in any year for 20 years before 1960. While it is true that during the years from 1960 to 1965 there was a rising graph in the supply, again, we have to keep the matter in context and realise that when we have had this set-back in production, this downward cycle, which has lasted longer than heretofore or than had been expected, the same number of factories today as we had pre-1960 have got more pigs during the past 12 months than in any of the 20 years immediately prior to 1960. To attribute any closure to inadequacy of supply is, obviously, not the entire answer by any means.

I may say, also, in regard to the decline over these last couple of years, that the number of sows and gilts in pig, at a count last June and at a short count, as it were, in January of this year shows a small but, nevertheless, significant trend upwards again. We hope that this trend will continue and that during the year 1968 not only will the downward trend evidenced over the last couple of years have been arrested but that the numbers will begin to climb again and that factories which may have had difficulty and which undoubtedly, have been in competition with each other in getting sufficient supply, will find that this difficulty will gradually disappear and that our overall pig numbers can be raised substantially above that attained two years ago.

We aim not merely at restoring the number that we had a couple of years ago, but it is my hope and intention to try to bring about a situation and atmosphere in the pig and bacon industry in which there would be a substantial increase, gradual, no doubt, but nevertheless real, over the next two or three years.

I would hope also that the increase looked for will come mainly from the western counties where the production and fattening of pigs in very much greater number than is now the case would be not only good for the country but particularly good for the farmers and especially the small farmers of the western areas. This is my intention. We are trying to find ways and means of encouraging such a move and of these the House will, in due course, I hope, hear more in greater detail.

The overall situation is that scarcely anybody will disagree that this additional money is needed and, in various ways, is being used for very useful purposes in our primary industry and, large though this demand is, I think the House will agree to the provision in order that we may continue to fund those who are dependent to some degree on these various supports.

Of the total amount of money going to agriculture, directly and indirectly, the indirect part is a matter to which other members of the community should occasionally have regard. I do not intend to analyse this at the moment. Suffice it to say that while the total overall figure, direct and indirect, is very substantial, approaching £70 million during the current year, we should not allow it to be thought that this is overdoing it and that it is not in a very worthy and useful cause. We are supporting this industry in these various ways, directly and indirectly, for the very good reason that we recognise its value and importance. To those who have no connection with farming operations I would point out that not all of this money is a direct hand-out or dole to farmers, that a large part of it is directed in other necessary ways. It is computed that the direct payments as well as the indirect arrive at this total figure which, as I say, is substantial and represents a heavy burden on the taxpayers as a whole but, if it is examined, it will be realised that it is to quite a degree not direct payment to the farmers and where it is direct that it is doing a useful job in our most important industry on which all taxpayers to a greater or lesser degree depend for their very existence and for the better way of life which they may be enjoying as a result of agriculture doing its job as efficiently as it does, and has done, despite all the difficulties over the years.

Before the question is put I should like to ask the Minister a question. He spoke when concluding of the problem of reviving the number of pigs. He spoke earlier in this House of his being aware that the recent increase of £3 a ton in the cost of pig feeding without any corresponding adjustment of the minimum factory price for pigs was calculated to discourage the production of pigs. I wonder if he is in a position to say now that the factory price of pigs will be adjusted to meet the increased cost of pig feeding because my experience in Monaghan and in the province of Connaught suggests that the apprehension of this continued disparity between the price of pig feed and pork is driving a considerable number of people out of pig production ?

If I may, I should just like to correct a possibly wrong impression given by Deputy Dillon. For a considerable period the actual market price for pigs has been greatly in excess of the guaranteed minimum price which for grade A Special pigs has been 266/-. Market prices have been around 280/- to 288/-. Therefore, an increase in the guaranteed minimum price would not at the moment be of direct benefit to the producer because the market price is about 20/- above the guaranteed minimum. The increase in feeding stuffs has had its effect in these recent weeks mainly as a result of devaluation. All these matters are under consideration in regard to an increase in the minimum price but let me say straight away that such an increase will be reflected in an increase in subsidy to the exporter for his exported bacon and need not necessarily reflect itself in any benefit to the pig producer. The mere raising of the minimum price would not necessarily be to the advantage of the pig producer because of the fact that at the moment and for months past the market price has exceeded the minimum price by up to 20/- a cwt. The impact of the increase in the cost of feeding will not approach nearly 20/- and, therefore, it would not bring the price up to the 280/- or 288/- and, therefore, it is not as real an advantage to the farmer as it may appear but is a more real recompense to the factory, to the bacon curers, who export bacon, in respect of which we are under a commitment to make up to them a price related to the minimum price. This is, as I say, under consideration but it will not necessarily mean x shillings additional to the producer.

Motion "That the Vote be reduced by £2,600 in respect of Subhead K.K. 6—National Agricultural Council" put and declared lost.
Vote put and agreed to.
Barr
Roinn